We develop a model to illustrate that controlling shareholders choose the level of investor protection that maximizes their own interests. Controlling shareholders in companies with complicated control structures can easily extract private benefits and are thus reluctant to enhance investor...

In this paper, we examine how social networks among political leaders matter for state capacity. Using a unique data set covering the government work reports of city and central governments, we find that city leaders with hometown connections with Politburo Standing Committee Members implement...

We study the impact of diverse beliefs on conduct of monetary policy. We use a New Keynesian Model solved with a quadratic approximation. Aggregation renders the belief distribution an aggregate state variable. Diverse expectations change standard results about a smooth trade-off between...